Here is a wonderful chart of tax revenues that the United States has received over the last five years:
[click to enlarge]And yet, there are many Congressmen (primarily Democrats) who do not want to renew the very provisions which have led to this boon in tax revenue, in addition to putting more money in Americans' pockets. Just remember this chart next time you hear that raising taxes is important to support some program.
Yesterday on this subject: Tax-Cut Deadline; Economy Galloping Along.
Technorati tags: Dividends, Capital Gains, Economics, Tax, Congress, Revenues.
C'mon Ezzie! You know very well that a time series chart in current dollars is misleading. In constant dollars, we have yet to get up to the level of receipts in fiscal year 2000.
ReplyDeleteMy source for this is the administration's own table at
http://www.gpoaccess.gov/usbudget/fy06/sheets/hist01z3.xls
They project that they will finally get up to the fy 2000 level in fy 2008.
Note that Nixon's tax cut, and Reagan's tax cut, were both followed by reduced revenues for several years.
But Charlie, that's not the point: Even in 2000 dollars, the receipts are steadily rising despite the (i.e. because of) the cuts.
ReplyDeleteInterpretation: The amount that was coming in was dropping steadily once the bubble burst; now that Bush's tax cuts were instituted, we see an immediate, and strong, reversal. (Not to mention all the other positives mentioned in other posts.)